The Armed Forces (Transitional Provisions) Pensions Regulations 2015

PART 1 Preliminary

Citation and commencement

1.—(1) These Regulations may be cited as the Armed Forces (Transitional Provisions) Pensions Regulations 2015.

(2) These Regulations come into force on 1st April 2015.

Interpretation

2.  In these Regulations—

“AFPS 2015” means the scheme established by the Armed Forces Pension Regulations 2014(1);

“EDP 2015” means the scheme established by the Armed Forces Early Departure Payments Scheme Regulations 2014(2).

PART 2 Amendments to the Armed Forces Pension Scheme 1975

Amendment of the Armed Forces Pensions Scheme 1975

3.  The Armed Forces Pension Scheme 1975(3) (“the AFPS 1975”) is amended according to the provisions in this Part.

Amendment of Rule A.1 in Schedule 1 to the AFPS 1975

4.  In the Naval and Marine Pensions (Armed Forces Pension Scheme 1975 and Attributable Benefits Scheme) Order 2010(4) (the “Naval Pensions Order”), the Army Pensions (Armed Forces Pension Scheme 1975 and Attributable Benefits Scheme) Warrant 2010(5) (the “Army Pensions Warrant”) and the Air Force (Armed Forces Pension Scheme 1975 and Attributable Benefits Scheme) Order 2010(6)(the “Air Force Pensions Order”), rule A.1 in Schedule 1 (General interpretation) is amended by inserting at the appropriate places—

“(a) “AFPS 2015” means the scheme established by the Armed Forces Pension Regulations 2014(7);”; and

“(b) “transition date” has the same meaning as specified in paragraph 1 of Schedule 3 to this Instrument;”.

Amendment of Rule H.1 in Schedule 1 to the AFPS 1975

5.  In the Naval Pensions Order, the Army Pensions Warrant and the Air Force Pensions Order, rule H.1 in Schedule 1 (Further pensionable service: general rule) is amended by inserting into paragraph (1) after “further pensionable service” the following: “including service by virtue of which the person is eligible for membership of the Armed Forces Pension Scheme 2015(8) (“AFPS 2015”)”.

Amendment of Rule H.3 in Schedule 1 to the AFPS 1975

6.  In the Naval Pensions Order, the Army Pensions Warrant and the Air Force Pensions Order, rule H.3 in Schedule 1 (Service on lower pay) is amended by—

(a) inserting into sub-paragraph (1)(a) after “further pensionable service” the following: “including service by virtue of which the person is eligible for membership of the AFPS 2015”; and

(b) in paragraph (3), inserting after “A is the annual amount of the pension” the following: “which includes, in the case of an AFPS 2015 pensioner, their AFPS 2015 pension”.

Amendment of Rule H.4 in Schedule 1 to the AFPS 1975

7.  In the Naval Pensions Order, the Army Pensions Warrant and the Air Force Pensions Order, rule H.4 in Schedule 1 (Reserve Service) is amended by—

(a) inserting into paragraph (1) after “in reserve service” the following: “including service by virtue of which the person is eligible for membership of the AFPS 2015”; and

(b) in paragraph (3), inserting after “A is the annual amount of the pension” the following: “which includes, in the case of an AFPS 2015 pensioner, their AFPS 2015 pension”.

Insertion of new Schedules

8.  The Naval Pensions Order, the Army Pensions Warrant and the Air Force Pensions Order are each amended by inserting, after Schedule 2 in each case, the new Schedule 3 contained in Schedule 1 to this Instrument, which has effect.

PART 3 Amendments to the Armed Forces Pension Scheme 2005

Amendment of the Armed Forces Pensions Scheme 2005

9.  The Armed Forces Pension Scheme 2005(9) is amended according to the provisions in this Part.

Insertion of new article 5 into the AFPS Order 2005

10.  The Armed Forces Pension Scheme Order 2005(10) (“the AFPS Order 2005”) is amended by inserting after article 4 the following new article—

“Closure of Scheme and transitional provision

5.— (1) Schedule 2 (Transitional Provision) has effect.

(2) After 31st March 2015, the Scheme is closed to new members except where provided for in Schedule 2.”.

Amendment of rule A.1 in Schedule 1 to the AFPS Order 2005

11.  Rule A.1(interpretation: general) in Schedule 1 to the AFPS Order 2005 is amended by inserting at the appropriate place—

““AFPS 2015” means the scheme established by the Armed Forces Pension Regulations 2014(11);”;

Amendment of rule H.1 in Schedule 1 to the AFPS Order 2005

12.  Rule H.1(application of Part H) in Schedule 1 to the AFPS Order 2005 is amended by—

(a) in paragraph (1), after “pensioner member or deferred member of the Scheme” inserting “(whether or not they are also a pensioner member of the AFPS 2015)”;

(b) after paragraph (1)(b), inserting—

“or

(c) is re-engaged in service by virtue of which the person is eligible for membership of the AFPS 2015,”;

(c) after paragraph (2)(b), omitting “and”; and

(d) after paragraph (2)(c), inserting—

“and

(d) where sub-paragraph (1)(c) applies, the “old service pension” includes any AFPS 2015 pension.”.

Insertion of new Schedule into the AFPS Order 2005

13.  The AFPS Order 2005 is amended by the insertion after Schedule 1 to the new Schedule 2 contained in Schedule 2 to this Instrument(12).

PART 4 Amendments to the Armed Forces Early Departure Payments Scheme 2005

Amendment of the Armed Forces Early Departure Payments Scheme 2005

14.  The Armed Forces Early Departure Payments Scheme 2005(13) is amended according to the provisions in this Part.

Amendment of article 3 (general interpretation) of the EDP Order 2005

15.  Article 3 (general interpretation) of the Armed Forces Early Departure Payments Scheme Order 2005(14) (“the EDP Order 2005”) is amended by inserting at the appropriate places—

(a) ““AFPS 2015” means the scheme established by the Armed Forces Pension Regulations 2014 (“the AFP Regulations 2014”);”,

(b) ““EDP 2015” means the scheme established by the Armed Forces Early Departure Payments Scheme Regulations 2014;”,

(c) ““transition date” in relation to a person with dual entitlement means 1st April 2015 or, if later, the day on which a person ceased to be a full protection member of the AFPS 2005;”, and

(d) ““full protection member” has the meaning given in Part 2 of Schedule 2 to the Armed Forces Pension Scheme Order 2005(15);”.

Insertion of new article 3A in the EDP Order 2005

16.  The EDP Order 2005 is amended by, after article 3, inserting the following new article—

“Meaning of “a person with dual entitlement”

3A.— (1) For the purposes of the Scheme “a person with dual entitlement” means, subject to paragraph (2), a person who—

(a) is a member of AFPS 2005 by virtue of their pensionable service under the AFPS 2005, or

(b) was eligible to have been a member of AFPS 2005, and

(c) is also a member of the AFPS 2015 by virtue of their pensionable service under the AFPS 2015, or

(d) was eligible to have been a member of the AFPS 2015 on or after 1st April 2015.

(2) A person is not a person with dual entitlement where the gap between the last day of service or eligibility at paragraph (1)(a) or (b) as the case requires and the first day of service or eligibility at paragraph (1)(c) or (d) as the case requires exceeds 5 years.”.

Amendment of article 4 (meaning of “relevant service”) of the EDP Order 2005

17.  Article 4 of the EDP Order 2005 is amended by, after paragraph (3), inserting—

“(4) In the case of a person with dual entitlement, service on or after the transition date —

(a) is relevant service for the purposes of article 6(1) and (5),

(b) is relevant service for the purposes of article 8(4),

(c) is relevant service for the purposes of article 10(4)(a) and (b),

(d) is relevant service for the purposes of article 16(1)(b),

(e) is not relevant service for the purposes of article 5(a).”.

Amendment of article 8 (eligibility for early departure payments) of the EDP Order 2005

18.  Article 8(5) of the EDP Order 2005 is amended by—

(a) omitting “or” at the end of sub-paragraph (a),

(b) after paragraph (b) inserting—

“(c) regulation 51 of the AFP Regulations 2014 (entitlement to ill-health pension: active member with permanent serious ill-health), or

(d) regulation 52 of the AFP Regulations 2014 (entitlement to ill-health pension: active member with significant impairment of capacity for gainful employment).”.

Amendment of article 10 (amount of payments under article 9) of the EDP Order 2005

19.—(1) Article 10 of the EDP Order 2005 is amended by—

(a) in paragraph (2) substituting “T” for “N”,

(b) in paragraph (4)—

(i) omitting “that the person is entitled to count for the purposes of Condition C in article 8(4), and”,

(ii) inserting after sub-paragraph (a)—

“(zb) T is either—

(i) the number of years’ relevant service, or

(ii) for a person with dual entitlement, the number of years’ relevant service before the transition date, and”,

(c) in paragraph (5) inserting “or T, as appropriate,” after “N”,

(d) inserting after paragraph (8)—

“(8A) In the case of a person with dual entitlement—

(a) service on or after the transition date is qualifying service for the purposes of regulation 10 of the EDP Regulations 2014,

(b) all payments made under this article and regulation 10 of the EDP 2015 are payable under the EDP Regulations 2014.”.

Amendment of article 12 (effect of rejoining armed forces or entering certain reserve forces service on article 9 award) of the EDP Order 2005

20.  Article 12 of the EDP Order 2005 is amended by—

(a) at the end of paragraph (4)(a) omitting “or”,

(b) after paragraph (4)(b) inserting—

“(c) regulation 51 of the AFP Regulations 2014 (entitlement to ill-health pension: active member with permanent serious ill-health), or

(d) regulation 52 of the AFP Regulations 2014 (entitlement to ill-health pension: active member with significant impairment of capacity for gainful employment.)”.

Amendment of article 14 (entitlement to resettlement grants) of the EDP Order 2005

21.  Article 14(1) of the EDP Order 2005 is amended by, after paragraph (d), inserting—

“and

(e) is not entitled to a resettlement grant under regulation 16 of the EDP Regulations 2014.”.

Amendment of article 16 (lump sum awards: incapacity for armed forces service) of the EDP Order 2005

22.  Article 16 of the EDP Order 2005 is amended by—

(a) at the end of paragraph (1)(d)(iii) omitting “or”,

(b) after paragraph (1)(d)(iv) inserting—

“(v) regulation 43 of the AFP Regulations 2014 (retirement on or after reaching normal pension age – active members),

(vi) regulation 51 of the AFP Regulations 2014 (entitlement to ill-health pension: active member with permanent serious ill-health),

(vii) regulation 52 of the AFP Regulations 2014 (entitlement to ill-health pension: active member with significant impairment of capacity for gainful employment), or

(viii) regulation 60 of the AFP Regulations 2014 (option for members in serious ill-health to exchange whole pension for lump sum).”,

(c) inserting at the beginning of paragraph (3) “Subject to paragraph (4A),”,

(d) inserting at the beginning of paragraph (4) “Subject to paragraph (4A),”,

(e) after paragraph (4) inserting—

“(4A) In the case of a person with dual entitlement—

(a) paragraphs (3) and (4) do not apply,

(b) service on or after the transition date is only service for the purposes of regulation 20 of the EDP Regulations 2014,

(c) the amount of the lump sum calculated under paragraph (2)—

(i) is added to the amount of the lump sum calculated under regulation 20(1) of the EDP Regulations 2014 but ignoring regulation 20(1) sub-paragraphs (a) and (b), and

(ii) sub-paragraphs (a) and (b) of regulation 20(1) are then applied,

(d) all payments made under this article and regulation 20 of the EDP Regulations 2014 are payable under the EDP 2015.”.

(f) after paragraph (5) inserting—

“(6) For a person with dual entitlement this article is subject to regulation 58 (member’s request for review of ill-health awards) of the AFP Regulations 2014.”.

PART 5 Amendments to the Reserve Forces (Full-Time Reserve Service) Pension Scheme 1997

Amendment of the Reserve Forces (Full-Time Reserve Service) Pension Scheme 1997

23.  The Reserve Forces (Full-Time Reserve Service Pension Scheme 1997(16)(“the FTRS 1997”) is amended according to the provisions in this Part.

Amendment of Rule G.1 in Schedule 1 to the Reserve Forces (Full-Time Reserve Service Pension Scheme 1997) Regulations 2010

24.—(1) Rule G.1 (abatement of pensions on giving further service), in Schedule 1 to the Reserve Forces (Full-Time Reserve Service Pension Scheme 1997) Regulations 2010(17) “the FTRS Regulations”) is amended by inserting into paragraph (1), after “further pensionable service”, the following words: “including service by virtue of which the person is eligible for membership of the Armed Forces Pension Scheme 2015 (“AFPS 2015”)(18).”.

(2) Rule G.1 is further amended at paragraph (2) by the insertion, after “the amount that the pension” the following words: “(which includes, in the case of an AFPS 2015 pensioner, their AFPS 2015 pension)”.

Insertion of new regulation 3 into the FTRS Regulations

25.  The FTRS Regulations are amended by inserting, after regulation 2, the following new regulation—

“Transitional provision

3.   Schedule 2 (Transitional Provision) has effect.”.

Insertion of new Schedule into the FTRS Regulations

26.  The FTRS Regulations are amended by the insertion of the new Schedule 2 contained in Schedule 3 to this Instrument.

PART 6 Amendments to the Reserve Forces Non Regular Permanent Staff Pension Scheme

Amendment of the Reserve Forces Non-Regular Permanent Staff (Pensions and Attributable Benefits Scheme) Regulations 2011

27.  The Reserve Forces Non Regular Permanent Staff Pension Scheme (19) is amended according to the provisions in this Part.

Insertion of new regulation 3A

28.  The Reserve Forces Non Regular Permanent Staff (Pension and Attributable Benefits Scheme) Regulations 2011(20) (“the NRPS Regulations 2011”) are amended by inserting, after regulation 3, the following new regulation—

“Transitional provision

3A.— (1) Schedule 3 (Transitional Provision) has effect.”.

Insertion of new Schedule into the NRPS Regulations 2011

29.  The NRPS Regulations 2011 are amended by the insertion after Schedule 2 to the new Schedule 3 contained in Schedule 4 to this Instrument.

PART 7 Amendments to the Reserve Forces Pension Scheme Regulations 2005

Amendment of the Reserve Forces Pension Scheme 2005

30.  The Reserve Forces Pension Scheme 2005(21) is amended according to the provisions in this Part.

Insertion of new article 5 into the Reserve Forces Pension Scheme Regulations 2005

31.  The Reserve Forces Pension Scheme Regulations 2005(“the RFPS Regulations 2005”) (22) are amended by inserting after regulation 2 the following new regulation—

“Closure of Scheme and transitional provision

3.— (1) Schedule 3 (Transitional Provision) has effect.

(2) After 31st March 2015, the Scheme is closed to new members except where provided for in Schedule 3.”.

Amendment of rule A.1 in Schedule 1 to the RFPS Regulations 2005

32.  Rule A.1(interpretation: general) in Schedule 1 to the RFPS Regulations 2005 is amended by inserting at the appropriate place—

““AFPS 2015” means the scheme established by the Armed Forces Pension Regulations 2014(23);”.

Amendment of Rule G.1 in Schedule 1 to the RFPS Regulations 2005

33.  Rule G.1(application of Part G) in Schedule 1 to the RFPS Regulations 2005 is amended by—

(a) in paragraph (1), after “pensioner member or deferred member of the Scheme” inserting “(whether or not they are also a pensioner member of the AFPS 2015)”;

(b) after paragraph (1)(b), inserting—

“or

(c) is re-engaged in service by virtue of which the person is eligible for membership of the AFPS 2015.”;

(c) after paragraph (2) (b), omit “and”; and

(d) after paragraph (2)(c), inserting—

“and

(d) where sub-paragraph (1)(c) applies, the “old service pension” includes any AFPS 2015 pension.”.

Insertion of new Schedule into the RFPS Regulations 2005

34.  The RFPS Regulations 2005 are amended by the insertion after Schedule 2 to the new Schedule 3 contained in Schedule 5 to this Instrument.

PART 8 Amendments to the Armed Forces (Redundancy, Resettlement and Gratuity Earnings Schemes) (No.2) Order 2010

Amendment of the Armed Forces (Redundancy, Resettlement and Gratuity Earnings Schemes) (No.2) Order 2010

35.  The Armed Forces (Redundancy, Resettlement and Gratuity Earnings Schemes) (No.2) Order 2010(24) (“AF(RRGES) (No.2) Order”) is amended according to the provisions in this Part.

Amendment of article 2 (interpretation) of the AF(RRGES) (No.2) Order

36.  Article 2 (interpretation) of the AF(RRGES)(No.2) Order is amended by inserting in the appropriate place—

(a) ““AFPS 2015” means the scheme established by the Armed Forces Pension Regulations 2014(25);”;

(b) “transition member” means a person—

“(a) who is a member of the AFPS 1975 by virtue of their pensionable service under the AFPS 1975 before 1st April 2015; and

(b) who is also a member of the AFPS 2015 by virtue of their pensionable service on and after 1st April 2015;”.

Amendment of article 27 (interpretation of Part 4) of the AF(RRGES) (No.2) Order

37.  Article 27(2) of the AF(RRGES) (No.2) Order is amended by substituting—

““ill-health pension” means—

(a)

service invaliding retired pay or pension under the AFPS 1975,

(b)

an ill-health pension under regulation 51 of the Armed Forces Pension Regulations 2014, or

(c)

an ill-health pension under regulation 52 of the Armed Forces Pension Regulations 2014.”.

for—

““ill-health pension” means service invaliding retired pay or pension under the AFPS 1975;”.

Amendment of article 30 (factors affecting the amount of commutable pension) of the AF(RRGES) (No.2) Order

38.  Article 30 of the AF(RRGES) (No.2) Order is amended by inserting—

(a) after “a person” in sub-paragraph (1) “,not including a transition member,”,

(b) after sub-paragraph (1)—

“(1A) Subject to article 32, the maximum lump sum which can be commuted by a transition member is calculated by application of the following formula—

where—

• A in the case of an officer is the 34 year rate and in the case of someone who is not an officer is the 37 year rate;

• B is the aggregate lump sum from reckonable and pensionable service in AFPS 1975 and AFPS 2015;

• C is the number of years of AFPS 1975 service; and

• D is the total number of years of reckonable and pensionable service in AFPS 1975 and AFPS 2015.”.

Amendment of article 32 (misconduct) of the AF(RRGES) (No.2) Order

39.  Article 32 of the AF(RRGES) (No.2) Order is amended by—

(a) numbering the existing text as paragraph (1),

(b) after “the 37 year rate.” inserting—

“(2) For a transition member the figure denoted by A in article 30(1A) is replaced by the appropriate amount from paragraph (1).”.

Amendment of article 35 (entitlement to resettlement grants) of the AF(RRGES) (No.2) Order

40.  Article 35 of the AF(RRGES) (No.2) Order is amended by—

(a) substituting for the existing paragraph (1)—

“(1) A person who ceases to be in service as a member of the armed forces is entitled to a lump sum payment if the person—

(a) was, immediately before ceasing service, an active member of the AFPS 1975 or has opted-out;

(b) has the relevant years of service;

(c) is not entitled to the immediate payment of a pension under the AFPS 1975;

(d) is not entitled to the immediate payment of a pension under the AFPS 2015;

(e) is not entitled to an early departure payment under regulations 8 and 9 of the EDP 2015; and

(f) either—

(i) has not previously received a payment under the AFRGS 2010; or

(ii) has made a repayment in respect of a payment previously received in sub-paragraph (i).”

(b) substituting in paragraph (2)—

““relevant years of service””

for—

““relevant years of reckonable service””.

(c) inserting after paragraph (5)—

“(6) Transition members are not entitled to a lump sum payment under regulation 16 of the EDP 2015.”.

PART 9 Amendments to the Armed Forces Pension Regulations 2014 and the Armed Forces Early Departure Payments Scheme Regulations 2014

Amendment of the Armed Forces Pension Regulations 2014

41.  The Armed Forces Pension Regulations 2014(26) are amended by inserting into regulation 2 (interpretation) at the appropriate place—

““AFPS 2015” means the scheme established by the Armed Forces Pension Regulations 2014.”.

Amendment of the Armed Forces Early Departure Payments Scheme Regulations 2014

42.  The Armed Forces Early Departure Payments Scheme Regulations 2014(27) are amended by inserting into regulation 2 (interpretation) at the appropriate place—

““EDP 2015” means the scheme established by the Armed Forces Early Departure Payments Scheme Regulations 2014.”.

Signatory Text

Anna Soubry

Minister of State

Ministry of Defence

3rd March 2015

We approve

David Evennett

Harriet Baldwin

Two of the Lords Commissioners of Her Majesty’s Treasury

27th February 2015